How Does SMBs’ Development Affect SMEs’ Financing?
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| Title | How Does SMBs’ Development Affect SMEs’ Financing?
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| Author | Guangzi Li, Dehua Xiong and Li Liu |
| Organization | Institute of Finance and Banking, CASS;Guanghua School of Management, Peking University |
| Email | liguangzi@sina.com；dehua@gsm.pku.edu.cn；lli@gsm.pku.edu.cn |
| Key Words | SMBs; Financial Development; Banking Structure; SMEs’ Financing; Multiple Mediation Models. |
| Abstract | How to effectively solve the financing difficulty of small and medium-sized enterprises (SMEs) is an issue of common concern in academic and practical circles. Based on China industrial dataset from 2004 to 2009, this paper investigates whether the development of small and medium-sized banks (SMBs) helps to mitigate SMEs’ financing difficulty. This paper further analyzes the mediator effects through which SMBs’ development mitigates SMEs’ financing difficulty based on multiple mediation models. We find that, SMBs’ development can effectively narrow the gap of loan financing between SMEs and big companies, and can mitigate the negative impact of tight monetary policy on SMEs’ loan financing as well. This paper further compares two channels (improving financial development channel and optimizing banking structure channel) through which SMBs’ development mitigates SMEs’ financing difficulty. We find that, improving financial development channel is more important than optimizing banking structure channel. Our research has an important reference value to mitigate SMEs’ financing difficulty. |
| Serial Number | WP863 |
| Time | 2015-04-07 |
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